With an increase in sales to 1.573 million vehicles in 2010 for the first time in four years, Ford of Europe recorded revenue of 29.5 billion dollars, up 4.2% over the previous year (increased 10.9% as whole Ford). Pretax profit moved from the red for last year to the black by 182 million dollars.
It remained black by 107 million dollars in the first quarter in 2010 and by 322 million dollars in the second quarter of the same year. Yet, the turnaround has stalled since the beginning of the latter half with deficits by 196 million dollars and 51 million dollars in the third and the fourth quarters, respectively. Beside the decrease in sales, the deficits were caused by the soaring prices of raw materials, an increase in sales incentives, and the release costs of the new Focus higher than expected.
Based on the forecasts of Ford of Europe that the EU markets (19 countries) will be 14.5 to 15.5 million-unit scale in 2011 (15.3 million in 2010), Ford of Europe will stay focused on its positive pre-tax profit in 2011.
Ford of Europe's business results
| | Sales (dollars in billion) | Pretax profit (dollars in millions) |
| 2009 | 2010 | 2009 | 2010 |
| Ford of Europe |
28.3 |
29.5 |
(144) |
182 |
| Ford total |
116.3 |
129.0 |
2,599 |
7,149 |
| Sources: Ford 2010 Fourth Quarter and Full Year Earnings Review and 2011 Outlook (2011/1/28) |
Ford's sales volume by region (wholesale)
|
| (1,000 units) |
| | Ford and Lincoln brands | PAG | Grand Total |
| North
America | South
America | Europe | Asia-Pacific
and Africa |
| 2005 |
3,410 |
335 |
1,753 |
505 |
764 |
6,767 |
| 2006 |
3,051 |
381 |
1,846 |
589 |
730 |
6,597 |
| 2007 |
2,890 |
436 |
1,918 |
535 |
774 |
6,553 |
| 2008 |
2,329 |
435 |
1,820 |
464 |
359 |
5,407 |
| 2009 |
1,927 |
443 |
1,568 |
604 |
324 |
4,866 |
| 2010 |
2,413 |
489 |
1,573 |
838 |
- |
5,313 |
| Sources: Ford 2010 Fourth Quarter and Full Year Earnings Review and 2011 Outlook (2011/1/28) |
| NOTES: 1. |
Wholesale volume includes Ford-made vehicles (including OEM vehicles) and local brand vehicles made by non-consolidated affiliates. |
| 2. |
The data include sales volume of Mercury brand vehicles, which were discontinued in October 2010. |
| 3. |
Mazda6 produced at Automotive Alliance International is included in the sales volume in North America before 2008, but not included after 2009. |
| 4. |
PAG's data after 2008 are Volvo brand vehicles only. |
| 5. |
Sales volume in Asia-Pacific and Africa before 2008 includes sales of Ford brand vehicles sold by non-consolidated affiliates in China. Data after 2009 include those companies' sales volume of Ford and JMC brands vehicles. |
| 6. |
Volvo's vehicles sales (211K) are not included in 2010 as special items. Total sales volume of Ford and Volvo was 5.524 million units. |
Ford of Europe's quarterly business results
| | 2009 | 2010 |
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 |
| Sales volume
(1,000 units) | Europe |
343 |
400 |
393 |
432 |
416 |
420 |
340 |
397 |
| Ford total |
986 |
1,194 |
1,238 |
1,448 |
1,253 |
1,418 |
1,253 |
1,389 |
| Pretax profit
(dollars in millions) | Europe |
(585) |
57 |
131 |
253 |
107 |
322 |
(196) |
(51) |
| Ford total |
(1,662) |
2,241 |
1,112 |
908 |
2,135 |
2,847 |
1,887 |
280 |
Ford of Europe's 2011 Plans
| European markets |
Automobile market sales of 19 European countries where Ford track are to be 14.5 to 15.5 million units (it was 15.3 million units in 2010). UK, German and French markets are heading for recovery, although there are uncertainties in periphery European markets due to governmental budget cuts. |
| 2011 Plan |
In 2010, Ford of Europe posted an operating profit of 182 million dollars. It will stay focused on positive operating profit in 2011 as well. |
| Sources: |
Ford 2010 Fourth Quarter and Full Year Earnings Review and 2011 Outlook (2011/1/28),
Ford presentation material in J.P. Morgan Global High Yield & Leveraged Conference (2011/2/28) |
